Standard draws line in the sand
Withdrawal of sponsorship signals that firms have high expectations
The country’s largest bank by assets has taken a hard line on the governance challenges at Cricket SA by announcing its intention to discontinue being the main sponsor of the Proteas when the current contract lapses in April 2020. The bank was reacting to a number of unsavoury developments relating to the administration of the game. These include claims of impropriety, the resignation of directors and the banning of five journalists from attending games.
The country’s largest bank by assets has taken a hard line on the governance challenges at Cricket SA (CSA) by announcing its intention to discontinue being the main sponsor of the Proteas when the current contract lapses in April 2020.
The bank was reacting to a number of unsavoury developments relating to the administration of the game. These include claims of impropriety, the resignation of directors and the banning of five journalists from attending games.
“Our involvement in cricket is on condition that the reputation of cricket, the attributes associated with cricket, are the kind that we would love to be transferred to our brand and be associated with our brand,” said Thulani Sibeko, Standard Bank’s marketing director, who was explaining the reasons for terminating the tie-up on Friday.
“So it was with that difficult consideration that we concluded that the reputation [of CSA] that has been harmed by these developments necessitates that we do not renew the relationship,” he said.
The decision comes as the crisis in SA cricket deepens after the suspension last week of CSA CEO Thabang Moroe on allegations of misconduct.
The decision may reverberate around the R5bn sports sponsorship industry as it signals that companies have high expectations for the money invested in sport.
“This kind of fallout we usually see where a corporate has sponsored an individual, and the individual behaves badly,” said Kelvin Watt, MD for Africa and Asia at Nielsen Sports.
An obvious example would be the response of some brands to the publishing of Tiger Woods’s extramarital affairs, which saw a number of large companies, such as AT&T, Gillette and Gatorade, terminating their association with him.
Watt said there has not been any damage yet to the brands involved with cricket. “I think if it continued for an extended period, and the sponsors were directly implicated in wrongdoing, then yes, there would be damage.
“But when it’s a large corporate sponsoring a team, as is the case with Standard Bank and the
THIS FALLOUT WE SEE IN CASES WHERE A CORPORATE HAS SPONSORED AN INDIVIDUAL, AND THE INDIVIDUAL BEHAVES BADLY
Proteas, I think the public are discerning,” he said.
Standard Bank’s sponsorship of the Proteas is one of the most lucrative in local sport and is estimated to be R100m a year. Other costly endorsements relate to local football, rugby, golf and cycling.
Dimension Data’s sponsorship of the Tour de France cycling team bearing its name and Absa’s sponsorship of the Premier Soccer League (PSL) are considered to be the most expensive rights to acquire.
Watt estimated the size of the sports sponsorship market to be between R4.5bn and R5bn a year. That takes into account the investment into acquiring rights as well as follow-up commitments relating to “activations”.
Activations refer to activities that align the brand of the team, competition or athlete with those of the sponsor.
In the case of Standard Bank and the Proteas, activation would refer to the costs associated with promoting the bank’s association with the Proteas through different channels.
Former Proteas captain Graeme Smith is set to become the national director of cricket, according to Cricket SA (CSA) president Chris Nenzani, but the crisis in the administration of the sport continues with Nenzani and other board members refusing to heed calls to resign.
Tony Irish, CEO of the SA Cricketers’ Association (Saca), which on Friday called for Nenzani and the board to resign, said in a tweet: “Appalled that the president and board of CSA have taken no responsibility for cricket’s biggest crisis. Now clinging to power.”
Asked for clarification, Irish said the tweet was “my initial reaction”, and Saca was likely to make a detailed response.
Nenzani said he had spoken to Smith on Saturday morning.
“I am happy to announce that we have engaged Graeme Smith and I am confirming that by next week Wednesday all of the negotiations around the contract terms that need to take place would have been concluded,” said Nenzani, speaking after a special board meeting of CSA.
Smith will have just over two weeks to put a selection panel and coaching staff in place before the first of four Tests against England, starting at Centurion on December 26.
Despite calls for their resignation, Nenzani said the board had been mandated by the CSA members’ council — made up of presidents of the 14 provincial affiliates — “to continue to guide us through this period and turn it around”.
Saturday’s media conference came after a tumultuous week during which five journalists had their accreditation withdrawn, a major sponsor announced it would not renew its agreement with CSA and CEO Thabang Moroe was suspended on charges of misconduct.
Several prominent individuals, as well as the Gauteng cricket board and Saca, called for the CSA board to resign.
However, Nenzani said the issue had not been raised at a meeting of the members’ council in a meeting that started on Friday evening and continued until early on Saturday.
He brushed off the resignations of three of the board’s five independent directors.
“We thank them for their service and will engage in a process to fill the vacancies,” he said.
Nenzani said Jacques Faul, CEO of the Northerns cricket union and a former acting CEO of CSA, had agreed to again become the acting CEO with immediate effect.
Nenzani confirmed that former International Cricket Council (ICC) CEO Dave Richardson would work closely with Faul as a consultant.
Nenzani said he had approached Richardson to take over on a full-time basis for six months, but the former Proteas wicketkeeper indicated he was not available because he had just returned to SA and wanted to spend time with his family.
“We had a discussion with Dave and he made it clear he would have loved to take up the opportunity, but he has just returned from the ICC‚” Nenzani said. “He has plans and feels that it was going to be difficult to take over the job on a full-time basis.
“However‚ he is willing and able to help whoever we put in during this period and share his experiences.”
Faul said he knew he would have to hit the ground running. “Cricket SA is currently negotiating with sponsors. There is never a time where we don’t engage with people. We have to ask them what it will take to get them involved with us. It is something we want to get right.”
Richardson said he was pleased to be involved and would share his experiences.
“I am glad that Jacques has agreed to take this position on a full-time basis for the coming six months. He is the best man for the job‚” he said. “I will be there to provide guidance and support whenever necessary. He [Faul] is a tremendous implementer and we will make a good team because he gets things done.”